Money-Market Funds Cut Average Maturity to 40 Days as Fed Uncertainty Keeps Cash Short
Updated
Updated · Bloomberg · Jul 20
Money-Market Funds Cut Average Maturity to 40 Days as Fed Uncertainty Keeps Cash Short
3 articles · Updated · Bloomberg · Jul 20
Summary
Weighted average maturity at money-market funds has dropped to 40 days from 45 in mid-May, showing managers are pulling back from even modest interest-rate risk.
Federal Reserve policy uncertainty and a murky near-term rate outlook are driving the shift into overnight repurchase agreements, short-dated securities and floating-rate agency and Treasury debt.
T-bill exposure has edged lower despite rising government issuance, underscoring how strongly funds are prioritizing flexibility and immediate liquidity over locking in slightly longer paper.